Legal & General’s suburban build-to-rent business (LGSBTR) has secured a £150m five-year revolving credit facility to finance a pipeline of 1,000 BTR homes backed by HSBC UK, Barclays and NatWest.
LGSBTR recently announced it had exchanged on 107 homes with Cala Homes at Buckler’s Park, Crowthorne – the first forward funding transaction between the business and Cala, which are both owned by Legal & General Capital.
Jane Sullivan, finance director of Legal & General SBTR, said: “To have secured a facility of this size in such a challenging credit environment is testament to the merit of the product that SBTR is delivering, as well as the strength of relationship with our banking partners.
“Now more than ever there needs to be an affordable rental option that provides a viable choice. At LGSBTR we are determined to meet that need with high quality, well managed and specifically designed properties. LGSBTR are delighted to be working in partnership with HSBC UK, NatWest, and Barclays, with this loan facility being the vital next step in helping us to deliver our mission: addressing the shortfall in high quality, affordable rental properties.”
David Reid, managing director of Legal & General SBTR, added: “Committed to creating sustainable and healthy communities for our customers, we have established an internal healthy communities committee, recognising the homes and communities we create can play a significant role in addressing health inequalities in future. This loan facility will support this ambition and help us to deliver a new choice of healthy homes for renters.”
Michael Goode, director and BTR lead at NatWest, said: “We are delighted to support Legal & General in bringing much needed, high quality, professionally managed accommodation to the private rented sector. We believe the structural fundamentals will support single-family BTR in becoming a leading UK investment sector, as has been demonstrated in more mature rental markets overseas.”
Dan Wright, head of housing at HSBC UK, added: “HSBC UK is committed to helping its clients accomplish their social responsibility goals. The provision of high-quality affordable housing not only makes good business sense but more importantly will have a big impact on our communities.”
